National Retail plans preferreds offering; talked at 6.625% to 6.75%

By Stephanie N. Rotondo

Portland, Ore., Feb. 14 - National Retail Properties Inc. intends to sell $125 million of $25-par series D cumulative redeemable preferred stock, a trader told Prospect News on Tuesday.

The shares will be issued as a 1/100th of an interest in the newly designated perpetual preferreds, the company said in a press release.

Underwriters will have a 15% overallotment option.

Dividends are payable quarterly on the 15th of March, June, September and December. Price talk is 6.625% to 6.75%, the trader said.

The Orlando, Fla.-based real estate investment trust will have the option of redeeming the preferreds on or after February 2017 at par plus accrued and unpaid dividends. There is also a change-of-control feature.

The company has applied to list the preferreds on the New York Stock Exchange under the symbol "NNNPD."

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Wells Fargo Securities LLC and RBC Capital Markets LLC are the joint bookrunning managers. Raymond James & Associates Inc. and Stifel, Nicolaus & Co. Inc. are the lead managers. BB&T Capital Markets, Janney Montgomery Scott LLC and Morgan Keegan & Co. Inc. are the senior co-managers. Co-managers are Capital One Southcoast, FBR Capital Markets, Piper Jaffray & Co., PNC Capital Markets LLC and SunTrust Robinson Humphrey Inc.

Proceeds will be used for general corporate purposes, which may include redeeming outstanding preferred securities and repaying the outstanding debt under the company's credit facility.

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